Mastercard SpendingPulse releases compelling insights into the UK festive retail season, showcasing a resilient consumer landscape. From November 1 to December 24, the report reveals a notable 2.6% year-on-year increase in retail spending, spanning both in-store and online transactions across all payment methods, excluding car-related sales.
In the face of a cost-of-living crisis and extensive discounting, this modest growth demonstrates commendable resilience, although the impact of inflation tempers the apparent expansion.
The report highlights a festive resurgence in in-person experiences, with restaurant spending surging by an impressive 11.4%, complemented by a solid 3.5% increase in in-store sales. Conversely, online sales saw a slight dip of 2.8%, indicating a sustained preference for in-person shopping experiences.
The festive shopping peak occurred during Black Friday, as consumers capitalized on promotions, particularly in electronics, navigating the challenges posed by inflation.
In the gifting arena, jewelry emerged as a standout category, experiencing significant growth at 8.3%. Meanwhile, clothing sales soared by a robust 8%, indicating a proactive wardrobe update by British consumers in anticipation of the festive party season.
Natalia Lechmanova, Senior Economist, Europe for Mastercard, observed, “The British consumer has demonstrated savvy spending habits this year. Despite relatively flat overall retail spend, there is a notable uptick during Black Friday and Cyber Monday promotions, especially in electronics. Consumers are willing to invest in gifts, with substantial year-on-year growth in jewelry and clothing spend, emphasizing the importance of competitive pricing.
«There is also a cautiously optimistic return to the high street, with British consumers increasing spending on restaurants by over 11%, underscoring the enduring value placed on experiences and togetherness post-pandemic.”